Investing for Retirement with
a Roth IRA
Radio Transcript, 60 seconds, for use during week
of Feb. 18.
This is an Invest Wisely minute brought to you by Iowa State University Extension.
Roth individual retirement accounts, or IRAs, are available
to anyone with earned income of less than 166 thousand dollars
for a couple.
Roth contributions are always made with after-tax money. All
earnings within a Roth are tax-free if withdrawn after age 59
1/2, not tax-deferred as in a traditional IRA. Because you have
already paid tax on your contributions, you can withdraw your
contributions at any time without incurring a penalty or tax.
Other advantages of the Roth -- if you die with a balance
in your Roth IRA, it goes to your heirs tax-free, unlike the
traditional IRA, where your heirs will owe tax.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.